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Look out for next GFC.Its already here for some.https://www.landlords.co.nz/article/...y+27+June+2019
"recently is the tightening of bank policy on interest only loans. We currently have 5 rentals with an overall LVR of around 40%, so we're certainly not over-committed. However, over the past few years BNZ has been playing games, firstly not permitting any expansion by limiting loan money (we now only deal with them through a financial adviser because they no longer even answer our emails), and secondly insisting that some of the interest only loans become principal and interest, which apparently needlessly commits us to subsidising the loan costs from our other non-rental income, which at present is meagre"

Look out for next GFC.Its already here for some.https://www.landlords.co.nz/article/...y+27+June+2019
"recently is the tightening of bank policy on interest only loans. We currently have 5 rentals with an overall LVR of around 40%, so we're certainly not over-committed. However, over the past few years BNZ has been playing games, firstly not permitting any expansion by limiting loan money (we now only deal with them through a financial adviser because they no longer even answer our emails), and secondly insisting that some of the interest only loans become principal and interest, which apparently needlessly commits us to subsidising the loan costs from our other non-rental income, which at present is meagre"

I can't stand BNZ bunch of muppets .. tried twice to get honest refinance deal and they just don't have a clue

From my meetings with BNZ last year, the tone was very clear. They were not in the appetite to do ANY lending on commercial residential properties. Overall, they were not really interested in lending ; so they're basically don't want extra risk or exposure (can't blame them).

From my meetings with BNZ last year, the tone was very clear. They were not in the appetite to do ANY lending on commercial residential properties. Overall, they were not really interested in lending ; so they're basically don't want extra risk or exposure (can't blame them).

But in many cases, the loans are fully backed by high incomes and good equity .. personal risk wise rather have a 10% yield x 10yr fixed term lease than a week on week 5% Residental rental with exposure to a tenant that may or may not trash your property ..

But in many cases, the loans are fully backed by high incomes and good equity .. personal risk wise rather have a 10% yield x 10yr fixed term lease than a week on week 5% Residental rental with exposure to a tenant that may or may not trash your property ..

No the banks were very clear (and this is not with just BNZ in Christchurch). They said it's very unlikely to get a loan approval by their peer lending panel for loans on commercial ventures on residential land development. I saw vasts amounts of land in the north area of Chch (Burwood etc) where projects have went to a complete halt because of lack of funding. On top of that, there have been fraudulent cases where the banks have lent funds to similar projects up in Auckland that the owners (some that were non-resident of NZ) have taken the funds and disappeared. It doesn't take many of these large projects to fail where the banks decide that it's too risky to keep lending. They know the house market has turned into a buyer's market and with the foreign buyer's ban in NZ, it would be hard convincing that there's enough domestic $ to keep the prices high while development of residential land fizzles away.

So in a market like today, "fully backed by high incomes and good equity" is a not the case. When unemployment rises, so too do the incomes and when the banks start seeing more defaults, that means no more $ will be loaned out.

No the banks were very clear (and this is not with just BNZ in Christchurch). They said it's very unlikely to get a loan approval by their peer lending panel for loans on commercial ventures on residential land development. I saw vasts amounts of land in the north area of Chch (Burwood etc) where projects have went to a complete halt because of lack of funding. On top of that, there have been fraudulent cases where the banks have lent funds to similar projects up in Auckland that the owners (some that were non-resident of NZ) have taken the funds and disappeared. It doesn't take many of these large projects to fail where the banks decide that it's too risky to keep lending. They know the house market has turned into a buyer's market and with the foreign buyer's ban in NZ, it would be hard convincing that there's enough domestic $ to keep the prices high while development of residential land fizzles away.

So in a market like today, "fully backed by high incomes and good equity" is a not the case. When unemployment rises, so too do the incomes and when the banks start seeing more defaults, that means no more $ will be loaned out.

Just refinanced my commercial property and company loans @ 3.79% 1yr fixed (the bulk of the funds invested in the ASX )
no issues ... talk around another business loan sounds positive rates around 1% higher than Res lending... just about shifted banks to ASB that were offering $4550 cash + sharp rates but would have meant I had to pay Westpac back $2k in cash I received couple years back did secure another $1750 cash payment to stay with WP for min 3yrs